Renting a Room During the Olympics

The short answer is yes. However, providing that the amount involved is less than £4,250 and you continue to live in the property whilst renting the room(s) out, you could claim Rent a Room relief.

This relief was introduced to encourage home owners to use surplus rooms and benefit by not paying tax. It is restricted to the letting of fully furnished rooms for residential purposes only and the property must be your main home.

Even though you will not pay tax if the rental income is less than the relief available, you should report the income on your tax return, and any excess above the £4,250 is taxable at your marginal rate.

 

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.